Guests Sidney Waterfall, Ashley Lewin, and Tory Kindlick discuss the importance of splitting the funnel in marketing, switching strategies, analyzing ROI and metrics, handling objections, and establishing the right benchmarks for measuring performance.
Splitting the funnel provides valuable insights for marketers, enabling data-backed decision-making and fostering meaningful collaborations.
Transitioning to a demand gen strategy requires leveraging the split the funnel analysis to pitch new metrics and justify strategic shifts based on financial implications.
Deep dives
Understanding the Purpose and Benefits of Splitting the Funnel
Splitting the funnel is a valuable exercise for marketers to understand how their leads and investments translate into revenue. This analysis helps determine the percentage of revenue coming from inbound and outbound sources, aiding the transition from lead gen to demand gen. By analyzing past performance and splitting results by channel, marketers gain insights to justify strategic changes and discover hidden opportunities. The exercise provides valuable insights for both marketers and clients, enabling data-backed decision-making and fostering meaningful collaborations.
Transitioning from Lead Gen to Demand Gen and Buy-In from Executives
Transitioning from a lead gen model to a demand gen strategy can be challenging. It requires stakeholder buy-in and a shift in metrics evaluated. By leveraging the split the funnel analysis, marketers can pitch new metrics that align with a demand gen approach. This analysis helps to identify inefficiencies in the traditional B2B playbook and justifies changes based on financial implications. Presenting the ROI and cost-effectiveness of different channels, such as paid social, encourages decision-makers to consider strategic shifts and empowers marketers to drive positive changes.
Executing the Split the Funnel Exercise
To execute the split the funnel exercise, marketers need data on campaign sources, lead sources, and sources for conversion. Gathering this data from CRM or marketing automation systems, marketers can analyze the performance of various channels. Key data points include close one revenue, spending, leads, opportunities, conversion rates, average deal size, and pipeline velocity. Running this analysis for at least 12 months provides insights into the efficiency and impact of different channels and campaigns. The data informs marketers about resource allocation, identifying areas for improvement, and demonstrating the value of demand-gen strategies.
Overcoming Data Challenges and Sustaining Results
While data cleanliness may pose challenges, it should not hinder the split the funnel exercise. Gathering data from various sources and manually manipulating it can still yield valuable insights. Over time, marketers should align metrics with the demand-gen approach, such as pipeline creation and cost per SQL or marketing. Continuously revisiting the analysis, ideally on a quarterly basis, allows for monitoring progress, comparing against baselines, and justifying the efficacy of the demand-gen strategy. The data also supports handling objections and making data-driven decisions to drive effective marketing initiatives.
Sidney Waterfall (VP of Demand Gen), Ashley Lewin (Director of Demand Gen), and Tory Kindlick (Director of Demand Gen) hosted an episode dedicated solely to splitting the funnel - a hot topic amongst marketers and our community on LinkedIn. They broke down what it means to split the funnel, why you should, and how you can put it into practice at your company. This topic applies heavily to the shift from lead gen to demand gen and will empower you to make strategic recommendations and decisions at your organization using the data it will provide you.
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